Much discussion has been made about the property market since the conclusion on Brexit and the eventual price change when it comes to the pound sterling. Properties have been bought for a far lower price by overseas investors, while locals are struggling to keep to the current mortgage rates available. This year brings much hope that things will change for the better, but there’s a lot more that’s happening in the property market than just Brexit.
Industries intersecting with one another
Besides property and mortgage prices being unattainable by younger people, the nature of education and jobs is forcing citizens to move out from their homes to seek greener pastures and lower tax rates. People are choosing to always be on the move for a better job and education opportunities which creates a pattern of migration that strikes a blow on rent-to-own properties that aren’t nearby the preferred universities or business districts.
Beyond Brexit issues
As much as people would like to blame Brexit for the current state of the housing market, it’s not all due to Brexit. London has had a decade long property cycle that’s been tiptoeing on favourable to catastrophic. Brexit simply made for a great scapegoat for all the pent up issues that have been building for years.
The 2008 global banking crisis dealt a disruptive blow to the housing market which left the UK crawling back to get back on track. 2010 showed some signs of improvement with prices going back to up to twenty per cent until 2014, primarily with the help of foreign investors.
Investors waiting it out
Property buyers and sellers are looking to wait it out in the early months of 2019 before making any significant deals on properties. These businessmen aren’t just sitting doing nothing as they are keeping a close watch on potential sales and bargain purchasesby getting valid second opinion and quotes from agencies such as Gerald Eve Services who can compute a general valuation of a property based on the current economic and political state surrounding the area.
With much of their trust hanging on the verdict of politicians, not much can be done with the waiting that is sure to make a few investors fold to try their luck in another market that’s less likely to be unpredictable than the UK.
What’s next?
The bottom line is that in the UK, 2019 is off to a rocky start, with many of the final decisions for political standings being made later this year. Though Brexit will still be in a ‘transition period’ for the following two years, breaking up with the European Union has already done its damage. While foreign investors can still look forward to purchasing properties for a bargain, there is still hope for locals that the economic state of the UK will stabilise soon. In the next five years, investors are hoping for a big pay-out by holding on to their properties until they can become confident again to put their stakes financially in London’s political landscape.
